Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, a popular buy now, pay later service, is offering customers the opportunity to earn up to 10% cashback on their online purchases made through the Klarna app.
Participating retailers in the cashback initiative include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more partners expected to join soon. The cashback rewards can be applied within the Klarna app to the customer’s balance, withdrawn, or used for future Klarna purchases.
There is no limit to the amount of cashback customers can earn, but if an account remains inactive for 90 days, the cashback may expire, except for users of the paid Klarna membership program who enjoy cashback without an expiry date.
David Sandström, Klarna’s chief marketing officer, expressed excitement about the cashback program, emphasizing its value to customers during the busy shopping season.
Klarna provides interest-free repayment options for most payment plans like “Pay in 30 days” and “Pay in 3.” However, late fees of £5 for orders over £30 or 25% of the purchase price for orders under £20 may apply if payments are missed. Additionally, missed payments could negatively impact a customer’s credit report if shared with credit referencing agencies.
The Financial Conduct Authority (FCA) has initiated a review of buy now, pay later services due to concerns about customers accumulating unmanageable debt. Proposed regulations aim to ensure affordability checks are conducted and provide assistance to customers facing financial challenges. These rules are expected to be enforced when buy now, pay later services fall under the FCA’s jurisdiction in July 2026, giving firms a six-month window to seek full authorization.